sharing session tyme~~

بسم الله الرحمن الرحيم

Salam to all..2 days in a row I have been posting bout strategic management n it must be boring right. Still, today I will post bout S.M but it is not bout the chapter I learnt in the lecture but it is bout the sharing session with the O-SHIMA RESTAURANT’s owner, Puan Asnidar Hanim last 2 weeks.

O-Shima Restaurant is a Japanese-concept restaurant opened by Puan Hanim and her husband last 2 years. During the session, she have told us a lot bout her experience to start-up her business, the challenges, the difficulties n lot more..n don’t be surprised if I say that she is actually not a “business people” but an engineer..to me, its quite surprising bcoz it take a lot of courage to build up a business without any foundation or basic knowledge in business. Even me that take business course don’t have that courage yet…maybe later…hehe

As the sharing session past, my heart force me to go to her restaurant someday. I wanna try the food!!hungry!!my stomach have been “orchestrating” since I look at the picture of the food served there..n of course its halal ok..no worries, just go n eat..huhuhu..ok, let’s look at d pic.. confirm u all drooling la …hehe..wassalam~ 

Picture credit to:hazwansamian.blogspot.com

go go INTERNATIONALE!!

 بسم الله الرحمن الرحيم

Asslamualaikum and gud day to all.. its me cik tkah again.. jus yesterday I post about S.M subject n today I will post bout it again unfortunately. ..so, what can I do, I have delayed it bout 3 weeks, by hook or by crook or by anything I need to finish it as fast as my hand can type..hehe

Last entry we have peel (kupas) on how to strengthen the company’s position right..ok, continuing from that, today I wanna share on the topic of strategies for competing in international market.. Once we have a business and the business have expands locally, of coz we have the desire to go worldwide and generates more profit. But to do that we need strategies or the business will suffer more lost.

Why companies decide to enter foreign market?

1) gain access to new customer

2) achieve lower cost through economics of scale, experience and increased purchasing 

3) exploits more on its core competencies

4)gain access to resources n capabilities located in foreign market

5)spread its business risk across a wider market base

To set strategies to compete internationally is a lot lot lot harder than locally. Why?

1) Different countries have different home-country advantages in different industries. The company can use the Porter’s Diamond of national Competitive Advantage to identify the major factors that contribute to the competitive advantage of certain countries.(its Porter’s again..always him..why ha??is there no other person that n develop S.M framework like him?..kekeke) ok don’t mind that.

2) existence of location-based advantages to perform different value chain xtvt in different parts of the world

3) varying of political and economic risk in different countries

4) company face the risk of adverse shifts in exchange rates when operating in foreign countries

5) differences in buyer’s taste and preferences in different countries make it’s hard to customize and standardize the products and services

What are the strategic options to enter and compete in the international market?

v  Export strategies-maintain a national production-base and export goods to foreign markets

v  Licensing Strategies-license foreign firms to produce and distribute the company’s abroad. Works well for manufacturers n owners of proprietary technology

v  Franchising Strategies-best to be employed by services and retailing enterprise

v  Foreign subsidiary strategies-Establish a subsidiary in a foreign market via acquisition or internal development

v  Alliances n Joint Venture Strategies- rely on strategic alliances or j.v with the foreign com. bcoz they understand well the buying habits, customer preferences, distribution channel relationships n so on in that particular country.

What are the 3 main strategic approaches to compete internationally?

1) Multidomestic Strategy- Think Local, Act Local

2) Global Strategy- Think Global, Act Global

3) Transnational Strategy a.k.a Glocalization- Think Global, Act Local.

Ok, it is a brief explanation from me. If there are any further inquiries, kindly refer to the Crafting and Executing Strategy: The Quest for Competitive Advantage (Concepts and Cases) copyright by McGraw Hill Education…keke..wassalam~

MAY ALLAH BLESS US ALL TODAY AND ALWAYS

chapter 6~company,POWER UPPP!!

السلام عليكم ورحمة الله وبركاته

Salam sayyidul ayyam to all readers.. I think it is quite a while I did not post anything n it is ofcos la bcoz of my laziness meter is rising up until 100%..hehe..

Ok, let’s continue with our delayed strategic management sharing session.. in the last post, I have given u all some company example dat implemented the 5 generic competitive strategies..have u read? Read it before u continue with this post, pleassssseee.. ٩(̾●̮̮̃̾•̃̾)۶ hehe So, today, lets we go go go to the other topic on how to strengthening a company’s competitive position.

Once a company have settled down on which of the 5 generic strategies that the company want to use, they need to think on what other strategic actions they need to employ to complement on its strategies and strengthening its overall strategy.

What I can summarize from Dr. Ummi’s lecture, the company need to focus on 3 aspects..The strategic moves, The timing and last the scope of operations.

First, the strategic moves. They need to learn whether they need to pursue offensive or defensive strategic moves. The company should choose which one they want to employ based on the current market situation and the opportunities that they can spot on that time. If the company has the greatest competitive advantages over the targeted rival, the company is more likely to apply the offensive strategy. But, in order to apply offensive strategy the company should know which rivals to attack. If the company challenge a rival on a ground where the rivals are stronger, the company will struggle to survive. E.g of offensive strategy is the blue-ocean strategy. While if the company go into defensive strategy mode, the company need  to take actions on how to block all the rivals attack and also by giving signals to the rivals that if they still want to battle with the company, the cost will be more than its worth. This is likely either to discourage the rivals from attack at all or divert them to attack other less threatening company.

Second, the timing. When to make strategic move is as crucial as what strategy move to make. The company can choose whether to be a first-mover or late mover in the market. Both of these options have their own advantages and disadvantages. So, the company manager needs to carefully consider the pros and cons of the two options. The timing of strategy move can be one of competitive advantage for the company.so, to all the company managers …tik tok tik tok…choose wisely ok.

Third, the scope of operations. The scope of the firm refers to the range of xtvt which the performs internally, the breadth of its product and service offerings, the extent of its geographic market presence, and its mix of business. They can choose whether they want to xpand their scope horizontally (more broadly within their focal market) or vertically (up & down the value chain system from raw materials until sale and services to the end consumer). To xpand horizontally means by doing horizontal mergers or acquisitions. To go vertically is by doing vertical integration. Vertical integration can be done by doing forward or backward integration. Contrast to vertical integration strategy, the company also can do outsourcing. In current market, outsourcing is applied by many companies. Outsourcing is when the company choose to not perform certain value chain xtvt and let the outsiders’ specialist to do it.

Apart from all the strategies above, the company also have another option which is to do strategic alliances and partnerships. Strategic alliances is an agreement between 2 separate companies to work cooperatively in a certain project. Joint venture is an example of strategic alliances.

Alhamdulillah, another chapter has finished…hehe..thats  all for this entry.wassalam~

MAY ALLAH BLESS US ALL TODAY AND ALWAYS